Last week, debates and negotiations over a potential Greek financial bailout finally came to a head, with Greece soundly rejecting a bailout proposal from international creditors. It was widely praised as a bold move for the nation, but at the same time it’s more or less a disaster scenario for the Eurozone. Officials in Europe have already stated that the preferred goal is to keep Greece on the Euro, but at this point the so-called “Grexit”—that is, a Greek exit from the universal European currency—looks more likely than ever.
Global political ramifications aside, would such an event, bizarre as it seems, be the breakthrough Bitcoin has been waiting for?
Some say yes, and as of this Monday, Bitcoin had actually reached a a four-month price high, seemingly in direct correlation with Greece entering its most tenuous point in its relationship with the Eurozone. Evidently, as Greek citizens worry over what exactly is going to happen with their day-to-day currency—and even deal with daily limits on bank withdrawals—many are deciding to go their own way, which in some cases means investing in digital currency. Basically, this allows them to regain control over their own finances, moving savings into an international form of currency that won’t be directly devalued or decommissioned as a result of ongoing financial negotiations.
The extent to which this can become the case remains to be seen. However, even aside from this Monday’s four-month high, the latest Bitcoin charts clearly show that since early June—when negotiations started reaching their most tense point in Europe—Bitcoin has experienced a steady rise. Bitcoin was worth about $223 at the outset of June, and despite a very slight early dip to begin the month, it’s since climbed with relatively little interruption to a level just above $270 to start the week of July 6th-10th. Greece is not entirely responsible for this rise, but the direct correlation strongly supports the theory that the digital currency is taking full advantage of economic turmoil abroad. Some have even gone so far as to suggest that it could gain some sort of official impact in Greece.
In fact, back in April, Greek Finance Minister Yanis Varoufakis even went so far as to say “we’ll run on Bitcoin” when discussing Greece’s financial future. This led to speculation on whether or not Bitcoin could truly become the de facto national currency for a would-be former member of the Euro system. It would be an incredibly high-profile transition for Bitcoin and could spark the type of international mainstream relevance that could take the digital currency to the next level.
Whether or not things actually reach that point, it looks pretty clear that Bitcoin has been a beneficiary of Greek turmoil. And with no one quite sure exactly what the long-term impacts of a “Grexit” scenario would be on the Eurozone, who’s to say other countries with weak economic outlooks won’t also see their citizens turning to more stable digital currencies? It’s absolutely a situation worth monitoring for fans and investors of Bitcoin.